What is Net neutrality?
WHAT IS NET NEUTRALITY, AND WHAT ARE THE NEW RULES?
N
ew rules that treat the Internet like a public utility and prohibit blocking, slowing and creating paid fast lanes for online traffic took effect on Friday. Here’s a look at what the developments mean for consumers and companies:
three-time rotary club of manila journalism awardee 2006, 2010, 2012
U.N. Media Award 2008
So-called Net neutrality is the principle that Internet providers treat all Web traffic equally, and it’s how the Internet works today. The Federal Communications Commission (FCC) enacted rules that protect that, to make sure cable and phone companies don’t manipulate traffic: They can’t create special fast lanes for some content, like video from YouTube, or intentionally block or slow Web traffic. Many Internet providers say they don’t plan to do those things, but the FCC worried that they could.
WHAT’S CHANGING FOR CONSUMERS?
WHAT ABOUT FOR COMPANIES?
In enacting its rules, the FCC placed Internet service in the same regulatory camp as telephone service. That means providers have to act in the “public interest” when supplying Internet service and refrain from “unjust or unreasonable” business practices. The FCC can investigate complaints about industry practices that might violate Net neutrality principles, even if they’re not specifically prohibited by the rules. Complaints can be filed here: https://consumercomplaints. fcc.gov/ .
WHICH COMPANIES ARE AFFECTED?
Internet companies like Netflix and companies that manage Internet traffic, like Cogent, can also complain to the FCC about “unreasonable” behavior by broadband providers over networkconnection deals in the backbone of the Internet. Companies could complain that broadband providers are charging them too much to connect to their networks, for example. Fights over these arrangements had in the past led to a slowdown in Netflix streaming speeds for customers of several major Internet service providers.
WHY IS THE INDUSTRY OPPOSED?
Companies say they don’t want the stricter regulation that comes with the Net neutrality rules. They say the regulations will undermine investment in broadband, and that it’s not clear what is and isn’t allowed under the greater authority the FCC has to investigate unspecified complaints. They are also concerned about price regulation. The FCC says it won’t preapprove the prices companies set for Internet access. But consumers can complain about the cost of their service, and the government can look into it under the new rules. AP
Cable companies like Comcast; phone companies that provide Internet service to people’s homes and smartphones, like AT&T and Verizon; and cell-phone companies like Sprint.
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A broader look at today’s business
n Sunday, June 14, 2015 Vol. 10 No. 248
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PPP executive sees sluggish infrastructure development week ahead
ECONOMIC DATA PREVIEW
Peso
n Previous week: The local currency hit a downhill in the previous week, largely trading within the 45 territory during the period. The peso entered the 45 territory at the beginning of the week’s trade, at 45.025 to a dollar. The peso then slightly reverted back to 44.99 to a dollar on Tuesday and 44.91 to a dollar on Wednesday. The peso then hit its lowest value for the year at 45.15 to a dollar on Thursday, at the end of the week’s trade. The total traded volume is at $2.595 billion, and the average for the week is at P45.018 to a dollar. n Week ahead: With the continued strength of the US dollar brought about by positive data from the US and expectations that the world’s largest economy will improve, the peso is seen to likely remain within the 45 territory for the next week and may weaken further due to the shift of sentiment toward the dollar.
T
HE dearth in infrastructure development will remain in the next few years, a senior state official lamented, but, by the way the government’s Public-Private Partnership (PPP) Program is moving, it seems that hope is just a few more blocks away. Metro Manila and other urban centers have been experiencing traffic congestion of all sorts: from land and air, to sea and rail transports. While this is a clear sign of economic expansion, it also is a deterrent to growth itself. The solution, PPP Center Executive Director Cosette V. Canilao said, lies in
See “Outlook,” A2
two things: government financing and private-sector participation. “The dearth in infrastructure will remain in the next few years. It can be eliminated by government financing or asking the private sector to participate,” she said. Indeed, the government is moving to increase its spending in Continued on A2
American consumers getting mojo back as wages start rising Living on minimum wage
Hours needed to work in order to afford rent at minimum wage, without paying more than 30% of income. In no state can a minimum wage worker afford a one-bedroom rental unit at fair market rent, working a 40-hour work week.
Hours needed at minimum wage to afford a one-bedroom unit 60 hours per week or less
WA 73* OR 58*
CA 92*
MT 54* ID 59
NV 71*
Between 61-79 hours per week
WY 64 UT 69
AZ 67*
CO 75* NM 64*
By Roderick L. Abad
T
HE actual re s i d e nt i a l m a rket ’s output cannot keep pace with the real housing backlog in the Philippines, according to an asset-management and real-estate brokerage company. Pinnacle Real Estate Consulting Services Inc. revealed in its Market Insight June 2015 report that the average annual production of residential lots or units, including those of condominium projects, reached more than 200,000. This is based on the Housing and Land Use Regulatory Board’s
PESO exchange rates n US 44.9660
figures of approved licenses to sell in the past five years, which also indicates that condominium and economic housing are the top 2 categories that supply the demand. The latter was approved to sell 63,997; 45,117; 54,535; 59,464; and 63,398 units from 2010 to 2014, respectively. On the other hand, the former was licensed to sell 39,476; 51,388; 129,204; 78,458; and 76,413 units during the same years. Meanwhile, the breakdown for approved number of “for sale” socialized housing during the period covered is as follows: 52,602; 35,682; 45,285; 49,410; and 41,663.
MN 68*
SD 49* NE 54* KS 62 OK 59 TX 73
AK 79*
B
80 hours per week or more
NH 89 ME VT 70* 71*
ND 62
Demand outpaces housing supply–Pinnacle
Remittances (April 2015)
Monday, June 15 n March remittances: Money sent by Filipino migrant workers surged to its strongest growth in over five years in March this year, after showing worrisome growth rates in the first two months of the year. The Bangko Sentral reported last month that the cash remittances sent by overseas Filipinos in March 2015 hit $2.1 billion, thereby posting a growth of 11.3 percent during the month. n April remittances: As remittance growth became volatile in the first three months of the year, more and more people are speculating that the remittances in the country are slowing down. However, in a response to a query from the BusinessMirror, Moody’s Analytics economist for the Philippines Katrina Ell said the possible declining trend of
By Lorenz S. Marasigan
WI 67
IA 58 MO 59* AR 54* LA 69
MI 58*
IL IN 75* 62
OH 54* KY 57
TN 65
MS AL 61 61
HI 125*
IGGER paychecks are giving American consumers reason to believe again. The University of Michigan’s preliminary consumer sentiment index for June rose to 94.6, topping all estimates in a Bloomberg survey of economists, from a reading of 90.7 last month, figures showed on Friday. Households were the most upbeat about their wage prospects in seven years.
NY 98* PA 78 WV VA 53* 97
MA 87* RI 67* CT 84* NJ 100* DE 89* MD 101* DC 100*
NC 66 SC GA 66 72
*This state’s minimum wage exceeds the federal minimum wage of $7.25
FL 77 Source: National Low Income Housing Coalition Graphic: Tribune News Service
As the ranks of the unemployed shrink, the competition for skilled workers is heating up and forcing employers to boost wages to attract and retain staff. Firming confidence makes it likely that the recent pickup in consumer spending, which accounts for almost 70 percent of the economy, will be sustained. “The labor market continues to improve, and that’s probably the biggest determinant
of sentiment,” said Aneta Markowska, chief US economist at Société Générale in New York, whose forecast for a rise to 93.8 was among the closest in the Bloomberg survey. People “see their employers trying to fill positions and having a difficult time—that probably gives them a sense of having a little more pricing power.” See “Wages,” A2
See “Housing,” A2
n japan 0.3667 n UK 69.8457 n HK 5.7997 n CHINA 7.2455 n singapore 33.3972 n australia 34.8763 n EU 50.9420 n SAUDI arabia 11.9916 Source: BSP (11 June 2015)